TIOL-DDT 1623 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
"http://www.w3.org/TR/html4/loose.dtd">
<html>
<head>
<title>Untitled Document</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
</head>
<body>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1623</font><br>
06.06.2011<br>
Monday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - 'Declaration of Intent' on Free Shipping Bills </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has
clarified that “Declaration of Intent” needs to be mentioned mandatorily
on the free shipping bills for claiming Chapter 3 benefits. This declaration
can be made in the product description column in the free shipping bills
where sufficient space is available for this purpose. Instances have also
been reported where free shipping bills bear only the name of the Chapter
3 scheme like FPS,FMS etc or the intention to claim Chapter 3 benefit has
been mentioned manually on the shipping bills duly attested by customs. In
such cases RAs will accept these shipping bills for grant of Chapter 3 benefits. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The “Declaration of Intent” would not be required for shipments filed under chapter 4 (including drawback), chapter 5 or chapter 6 of FTP. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter 3 = PROMOTIONAL MEASURE </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter 4 = DUTY EXEMPTION / REMISSION SCHEME </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter 5 = EXPORT PROMOTION CAPITAL GOODS SCHEME </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Chapter 6 = EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) AND BIOTECHNOLOGY PARKS (BTPs) </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=46&filename=notification/dgft/2010/dgft10cir032.htm" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT Policy Circular No. 32/(RE-2010)/2009-14, Dated: June 3, 2011 , and </strong></font></a></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn053.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 53/(RE-2010)2009-2014, Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT - Exemption for export of 10,000 MTs of organic edible oils </font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> export of edible oils was initially prohibited for a period of one year with effect from 17.03.2008 vide Notification No. 85 dated 17.03.2008, which was extended from time to time. This extension is up to 30.09.2011 in terms of Notification No. 7 dated 30.09.2010. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Prohibition was relaxed in certain cases like export of:- </font></p>
<div align="justify">
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Castor Oil
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Coconut oil from Cochin Port
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Deemed export of edible oils(as input raw material) from DTA to 100% EOUs for production of non-edible goods to be exported.
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Oil produced out of minor forest produce even if edible
</font>
</p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Edible oils in branded consumer packs of up to 5 Kgs subject to a ceiling of 10,000 MTs up to 31.10.2011. </font></p>
</blockquote>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now the prohibition will not also apply to export of 10,000 MTs of organic edible oils, per annum, duly certified by APEDA, subject to following conditions: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Quantity limit shall be 10,000 MTs per annum; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) It should be duly certified by APEDA as being organic edible oils; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Export contracts should be registered with APEDA, New Delhi prior to shipment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Exports shall be allowed only from Customs EDI Ports. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not050.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 50/(RE – 2010)/2009-2014, Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Export of Organic Pulses </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT</strong> of Organic Pulses was earlier exempted from the ban on export of pulses with a ceiling of 10,000 tonnes up to 31.03.2012 and subject to certain conditions. Now exemption on export of organic pulses and lentils will be per annum; but with the ceiling of 10,000 MTs and subject to conditions as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Quantity limit shall be 10,000 MTs per annum; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) It should be duly certified by APEDA as being organic pulses and lentils; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Export contracts should be registered with APEDA, New Delhi prior to shipment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Exports shall be allowed only from Customs EDI Ports. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not051.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 51/(RE – 2010)/2009-2014, Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP - Exemption for export of 10,000 MTs of organic sugar </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>EXPORT</strong> of sugar is free subject to obtaining release order from the Chief Director (Sugar), Directorate of Sugar. But, now the same is not required for export of Organic sugar with a ceiling of 10,000 MTs per annum and subject to certain conditions as: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Quantity limit shall be 10,000 MTs per annum; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) It should be duly certified by APEDA as being organic sugar; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Export contracts should be registered with APEDA, New Delhi prior to shipment; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Exports shall be allowed only from Customs EDI Ports. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 52/(RE – 2010)/2009-2014, Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP
- Modification of SION C-593 under Engineering Product
Group </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNDER</strong> SION C-593, till now only HR coil/plates made of non-alloy steel were permitted input at Sl No. 1 of the SION. Now the definition of this input is modified to permit HR coil/plates made out of Alloy steel also. Description of export product has accordingly been amended to reflect the usage of Non alloy/alloy steel in the export product.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn051.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 51/(RE-2010)2009-2014, Dated: June 2, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">FTP – New ANF 3B </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> new EDI and user-friendly format of ANF 3B (Arayat Niryat Form) has been introduced to facilitate easy filing of applications for grant of SFIS (Served From India Scheme) benefits. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn052.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 52/(RE-2010)2009-2014, Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">COMPANIES (COST AUDIT REPORT) RULES, 2001 Superseded - New Rules Notified </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has superseded the Cost Audit Report Rules, 2001 and notified the new Companies (Cost Audit Report) Rules, 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">These rules apply to every company in respect of which an audit of the cost records has been ordered by the Central Government under sub-section (1) of section 233B of the Companies Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every such company has to, within ninety days of the commencement of every financial year, file an application with the Central Government seeking prior approval for appointment of the cost auditor, through electronic mode, in the prescribed form, along with the prescribed fee as per the Companies (Fees on Applications) Rules, 1999, and requisite enclosures. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every cost auditor so appointed shall, within thirty days of receipt of letter of appointment, inform his appointment to the Central Government through electronic mode, in the prescribed form, along with the requisite enclosures. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Every cost auditor, who conducts an audit of the cost records of the company, shall submit the report along with auditor's observations and suggestions, and Annexure to the Central Government within 180 days of the closure of the Financial Year, in the prescribed form and at the same time forward a copy of such report to the company. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What happens if he does not do it? There is a maximum penalty of Rs. 5000/-, but maybe this can be imposed every day as every day there is a new contravention. </font></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/mca_car_2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA NOTIFICATION [F.NO. 52/10/CAB-2010], Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Companies (Cost Accounting Records) Rules, 2011 Notified </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has notified the new Companies (Cost Accounting Records) Rules, 2011, in supersession of the Cost Accounting Records Rules, notified in thirty six notifications from 1967 through 2004. </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Every company to which these rules apply, including all units and branches thereof shall, in respect of each of its financial year commencing on or after the 1st day of April 2011, keep cost records. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The cost records shall be kept on regular basis in such manner so as to make it possible to calculate per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly/quarterly/half-yearly/annual basis. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The cost records shall be maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute; to the extent these are found to be relevant and applicable. The variations, if any, shall be clearly indicated and explained </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The cost records shall be maintained in such manner so as to enable the company to exercise, as far as possible, control over the various operations and costs with a view to achieve optimum economies in utilization of resources. These records shall also provide necessary data, which is required to be furnished under these rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ All such cost records and cost statements, maintained shall be reconciled with the audited financial statements for the financial year specifically indicating expenses or incomes not considered in the cost records or statements so as to ensure accuracy and to reconcile the profit of all product groups with the overall profit of the company. The variations, if any, shall be clearly indicated and explained. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ All such cost records, cost statements and reconciliation statements, maintained under these rules, relating to a period of not less than eight financial years immediately preceding a financial year or where the company had been in existence for a period less than eight years, in respect of all the preceding years shall be kept in good order. </font></p>
</blockquote>
<p><a href="http://www.taxindiaonline.com/RC2/pdfnoti/pdfmca/pdf2011/mca_car_2011.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA NOTIFICATION [F.NO. 52/10/CAB-2010], Dated: June 3, 2011 </font></strong></a></p>
<p align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Monday's cases</font></strong></font></strong></font></strong></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a></a><strong><font color="#663399"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Central Excise</font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Variation in weight of material shown on invoice and on physical verification - variation within tolerance limits as prescribed under SWAM Act and can be ignored - CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>UNLESS</strong> the invoices are found to be wrong or diversion of inputs received under invoice is proved, there is no provision to deny <em>CENVAT credit</em> – there is also nothing on record to prove that respondent actually recovered any "proportionate amount" by way of deduction from transporter's bill on account of loss of material by theft - Revenue appeal dismissed. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 194C - Whether when assessee enters into agreements with sub-contractors for civil construction and erection of transmission towers and also supplies materials, assessee is liable to TDS on supply portion as well: ITAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE </strong>issues before the Tribunal are - Whether when assessee enters into agreements with sub-contractors for civil construction and erection of transmission towers and also supplies materials, the assessee is liable to tax deduction at source on the supply portion as well and whether when contractors compensate farmers for uprooting their trees for installation of towers on behalf of assessee and also undertake the work of haulage of felled trees to stores, it attracts provisions of Sec 194C. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">There is no scope for filing appeal or stay petition before Tribunal against order of Assistant Commissioner, which has been passed in de-novo proceedings: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> order passed by Assistant Commissioner is appealable before Commissioner (Appeals) and not before Tribunal. The reasons advanced by the advocate are that since the present impugned order stand passed by Assistant Commissioner in de-novo proceedings and they have already challenged the earlier order of Commissioner (Appeals) before Tribunal, the present stay petition should be considered as being a part of the earlier appeal before Tribunal. No merit in the above arguments. There is no scope for filing appeal or stay petition before Tribunal against the order of Assistant Commissioner which has been passed in de-novo proceedings and for limited purpose of quantification in terms of remand order of Commissioner (Appeals). </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT</strong></font></p>
<p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day. </font></p>
<font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font>
</body>
</html>